Nails are now being whacked into the Russian coffin.
UK, US and EU sanctions against Rosneft and Lukoil are a powerful blow.
Chinese concessions are easier than you might think – but look to wider oil market factors.
Russia’s decline continues, now accelerating. Recent Chinese concessions not to purchase crude from Russian suppliers are less about complying with Western sanctions and more about having already fully topped up strategic reserves, knowing full well the impending oil glut will keep prices low. More detail below:
Oil
There are two key stories here. Yes, the US, UK, and EU all jointly and in quick succession announced sanctions against Russian oil majors Rosneft and Lukoil this month, but we should not ignore wider oil market factors too.
Between them Rosneft and Lukoil account for over 60% of the crude oil that Russia exports annually. On Wednesday 22nd October President Trump, preceded by a UK move, announced “tremendous” sanctions against the two companies, having alread...
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